Comcast creates US cable giant

Comcast secures AT&T's Broadband unit

The third-largest cable operator in the US Comcast has acquired the cable television unit of telephone giant AT&T in a $30bn (£19bn) deal to create the world's largest cable company.

AT&T's sale of its cable-internet division, known as ATT Broadband, marks the end of its plans to create a one-stop provider of telephone, data, wireless and entertainment services.

The merged group will have more than 21.4 million subscribers, almost double the number of its nearest competitor Time Warner Cable, and have an estimated value of $60bn.

The spin-off is the latest stage in the reorganization of the AT&T telecom empire, which two years ago announced a break-up plan.

The US regulator gave the deal conditional clearance on Wednesday.

Breaking up

C Michael Armstrong, the retiring chairman and chief executive of AT&T, will become chairman of Comcast under the merger plan.

"ATT Broadband and Comcast can accomplish more together than we could alone," Mr Armstrong said.

Mr Armstrong made initiated the break-up of AT&T, known as Ma-Bell, any into four separate companies.

After the cable spin-off, AT&T's two remaining units will provide voice and data services to about 4 million corporate customers and 60 million residential customers.

The sale of AT&T Wireless was completed last year.